The verdict in three sentences
For a builders merchant in Yaoundé, the credit extended to contractors and hardware stores is the top financial risk, well ahead of margin. A trade credit module with blocking limits, SMS reminders and per-depot tracking costs in order of magnitude 4,000,000 to 9,000,000 FCFA (about EUR 6,100 to 13,720) in 2026 and often pays for itself by recovering a fraction of receivables over 90 days. The golden rule: no credit sale leaves a depot when the limit or due date is exceeded, unless the manager grants a logged override.
The problem in numbers: 180 million FCFA outstanding
The manager of a cement, rebar and tile merchant with 4 depots (for example Mvan, Mimboman, Nsam, Olembé) carries 180 million FCFA of customer receivables. 20 %, i.e. 36 million, are over 90 days. Each depot sells on credit based on the depot head's trust, the true total per customer is only known at month end and reminders happen by phone when someone remembers.
| Module feature | What it changes | 2026 order of magnitude (FCFA) |
|---|---|---|
| Customer record and limit | Limit per customer, terms (30, 45, 60 days), guarantor | 600,000 to 1,200,000 |
| Multi-depot point-of-sale control | Real-time consolidated exposure, block on breach | 1,000,000 to 2,000,000 |
| Logged overrides | Manager approval on mobile, reason, duration | 400,000 to 900,000 |
| Aged balance and dashboard | 0-30, 31-60, 61-90, over 90 days, by depot and sales rep | 600,000 to 1,300,000 |
| SMS and WhatsApp reminders | D-3, D+1, D+15, statement sent | 500,000 to 1,200,000 |
| Mobile cycle counts | Count by aisle, justified variances, valuation | 900,000 to 2,400,000 |
| Total custom module | Depending on integration with the existing POS | 4,000,000 to 9,000,000 |
Running costs stay modest: hosting 25,000 to 60,000 FCFA per month, SMS around 15 to 25 FCFA each through a local aggregator, and a backup 4G connection per depot so exposure checks work even when fibre goes down.
Stock and credit: two leaks to close together
Inventory variances of 3 to 6 % are common in building materials trading: broken cement bags, cut rebar not declared, tiles leaving without a delivery note. These variances mix with unpaid invoices and distort margin. The module handles both in the same tool.
| Indicator | Current situation (estimate) | 12-month target |
|---|---|---|
| Receivables over 90 days | 20 % of exposure (36 M FCFA) | 8 to 10 % |
| Days sales outstanding (DSO) | 75 to 90 days | 45 to 55 days |
| Credit sales over limit | Not measured | Zero without logged override |
| Annual inventory variance | 3 to 6 % of stock | 1 to 1.5 % |
| Time to prepare a customer statement | 20 to 30 min | Automatic |
| Visibility of exposure per customer | Month end | Real time, 4 depots |
Watch point: the module must recognise Mobile Money payments (MTN MoMo, Orange Money) and bank transfers, then match invoices automatically. Without that reconciliation, the displayed exposure is wrong and sales staff work around the block.
Mini case study
Illustrative scenario: Serge, who runs a builders merchant in Yaoundé, invests 6,500,000 FCFA in the module. Out of 36 million in receivables over 90 days, systematic reminders and blocking new purchases recover 30 %, i.e. 10.8 million FCFA of cash. On an average stock of 120 million, bringing inventory variance down from 4 % to 1.5 % avoids 3 million in losses per year. Excluding the effect on new receivables, the module pays for itself in year one, with a cash gain above 14 million FCFA. These figures are estimates to validate against your real data.
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FAQ
Do we have to replace our current POS software?
Not necessarily. If your POS exposes a database or an API, the credit module connects to it for 800,000 to 1,800,000 FCFA of integration work. Otherwise, a lightweight web POS per depot is often cheaper than a workaround.
What happens during an internet outage at a depot?
The depot keeps selling for cash in offline mode. Credit sales above a threshold, for example 500,000 FCFA, wait for the manager's approval by SMS or WhatsApp, then everything syncs once the network is back.
How do we set the initial limits?
Start from 12 months of history: average monthly purchases, observed delays, account age. A simple rule such as 1.5 months of average purchases for good payers and 0.5 months for late payers covers 80 % of customers.
Won't SMS reminders upset large customers?
Tone and schedule are configured by category: polite reminder at D-3, statement at D+1, sales rep call at D+15. Contractors often appreciate receiving their account statement without asking.
How long does implementation take?
Allow 8 to 14 weeks, including 2 weeks to load customer balances and a first full stock count. Limit blocking can be switched on from week 6 at a pilot depot.
Let's scope your project. Share your number of depots, customer exposure and POS software: we scope a credit and inventory module with a FCFA budget and a per-depot rollout plan. Detailed quote within 48 h. WhatsApp +221 77 596 93 33.
Mohamed Bah
Fondateur, Kolonell
Passionate about digital and entrepreneurship in Africa, Mohamed has been helping Sénégalese businesses with their digital transformation since 2020. Founder of Kolonell, he believes every SME deserves a professional and accessible online présence.
